Which Purpose of Cost Allocation Is Used to Decide on the Selling

question 157

Multiple Choice

Which purpose of cost allocation is used to decide on the selling price for a customized product or service?

• A)to provide information for economic decisions
• B)to motivate managers and other employees
• C)to justify costs
• D)to measure income and assets for reporting to external parties
• E)to compute reimbursement

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Definitions:

Funeral Services

Funeral services refer to professional services provided by funeral directors and related businesses, such as the preparation, cremation, or burial of the deceased, and arranging memorial ceremonies.

Contract Cancellations

The termination of a contractual agreement, releasing all parties from their obligations under the contract.

Executive Branch

The branch of government responsible for enforcing laws and policies, typically headed by the president or prime minister at the national level.

U.S. Senate

One of the two houses of the United States Congress, composed of senators from each state who serve six-year terms, with responsibilities including legislation and oversight of the government.